Answer: While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
Explanation:
The options to the question are:
A) He believes that the actual likelihood of his death occurring in the next twelve months is really much greater than the actuarial estimate.
B) While the EMV is negative, the utility gained from purchasing the insurance is positive, and high.
C) Mr. Weed is not rational.
D) A or C
E) None of the above
From the question, we are informed that Robert Weed is considering purchasing life insurance and that he must pay a $180 premium for a $100,000 life insurance policy.
His beneficiary will get $100,000 if he dies and get nothing of he doesn't die. Even though there's a 0.001chanve of him dying, he eventually bought the insurance.
The reason for him buying the insurance is because EMV he realized that the utility that he will derive from buying the insurance is positive, and high. He believed that paying $180 for a chance to get $100,000 was worth the risk even if he had a slim chance of dying.
Answer:
A- removing frills from products
Explanation:
competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
In this case, removing frills creates better value to the consumers.
True! companies examine the demographics of people in a population, then selectively pick out a demographic among the many for whom they want to target their products and services at
Answer: D. The money supply will decrease as banks loan out less money.
Explanation:
The money supply in the Economy is <em>inversely related</em> to the amount of reserves that a bank holds. This is because the higher the reserves held, the less the banks will have to borrow out and the less new money can be created from the money loaned out. Holding excess reserves therefore results in less money supply.
Answer:
Having a good accountant if you own a large business is important because any mistakes could be detrimental in the long run and upset clients.An accountant takes care of all finances, If a buiisniness did not have an accountant it would most likely take a turn for the worst.
Explanation:
Hope this helped : )